Social Login

Remember me
News

Relief as Total Achieves Gas Flare-out in Ofon Oilfield Featured

Post by
06 February 2015
Rate this item
(0 votes)

Efforts by the federal government to end the flare of gas by oil companies operating in the country have received a boost as Total has completed the gas flare-out of the Ofon field on Oil Mining Lease (OML) 102 offshore Nigeria.

Apart from the greenhouse gas emission and attendant environmental hazards associated with gas flaring, Nigeria had lost average revenue of $2.5 billion to flared gas.

With Total’s feat at Ofon, the associated gas of the field is now being compressed, evacuated to shore and monetised via Nigeria Liquefied Natural Gas (LNG) in Bonny Island of Rivers State.

Total Exploration and Production Senior Vice President for Africa, Mr. Guy Maurice, said in a statement yesterday that the flare-out of the Ofon field illustrated the company’s commitment to developing oil and gas resources around its existing hubs in Nigeria.

According to him, “This important milestone of the Phase 2 of the Ofon project was achieved in a context of high levels of local content. The flare-out on Ofon is also significant for Total’s environmental targets, representing a 10 per cent reduction in the group’s E and P flaring. This achievement is a clear demonstration of Total’s commitment to the Global Gas Flaring Reduction Partnership promoted by the World Bank.”

The Ofon field is located 65 kilometres from Nigerian shores in water depths of 40 metres.

The field initially commenced production in 1997 and is currently producing about 25,000 barrels of oil equivalent per day (boe/d).

This flare-out milestone will allow for the gradual increase of production towards the 90,000 boe/d production target through the monetisation of around 100 million cubic feet of gas per day, followed in 2015 by the drilling of additional wells.

The execution of the project also involved significant local content, including the first living quarters platform to be fabricated in Nigeria.

Total E and P Nigeria operates OML 102 with a 40 per cent interest, alongside the Nigerian National Petroleum Corporation (NNPC) 60 per cent.

The company said the new feat by Total was a major boost to the federal government’s three decade-old quest for the elimination of gas flare in Nigeria.

The deadline given by the federal government for the elimination of gas flare had been shifted several times from the January 1, 1984, date provided in the Associated Gas Re-injection Act No. 99 of 1979 Cap. A25, Laws of the Federation of Nigeria, which was later amended to December 31, 2008.

Following the failure of the oil companies to meet previous deadlines, the House of Representatives then perfected the legislative framework that pegged a new deadline at December 31, 2012, but it was not also met.

But the House also imposed stiff penalties against non-compliance.

The earlier penalty fee of N410.00 per standard cubic feet of gas flared was also amended, with all companies prohibited from engaging in gas flaring whether routine or continuous.

“Any company so involved shall be liable to a fine to be determined at the prevailing international gas market price and such fines shall not be counted as part of Production Sharing Contract or Joint Venture obligations. Such fines shall be in addition to the penalty for flare,” the new law stipulated.

However, a company is permitted to continue to flare gas in a particular field or fields if the company pays the sum of $5.00 per 1,000 standard cubic feet of gas flared while a processing fee of $1000 shall be payable for every application for permit to flare gas during pre-commissioning and commissioning operations, equipment maintenance and operation upsets.

“Any company that declares an incorrect gas flared volume shall be liable to pay a penalty fee of $100,000 in addition to the payment of the difference of such declared volumes at the prevailing gas market price. Every emergency gas flared as a result of equipment failure or any other reason thereof, must be reported to the regulating agency within 24 hours, failing, which a fine of $500,000 shall be imposed on the defaulter,” the new law also stated.

Read from source...

Read 59653 times

166772 comments

  • Comment Link Ernie Friday, 29 July 2016 22:22 posted by Ernie

    Hello, after reading this awesome paragraph i am as well happy to share my
    experience here with colleagues.

  • Comment Link Darryl Friday, 29 July 2016 22:20 posted by Darryl

    For the reason that the admin of this web site is working, no question very quickly it will be
    famous, due to its quality contents.

  • Comment Link Shoshana Friday, 29 July 2016 22:18 posted by Shoshana

    Nice post. І used to be checking constantly this blog annd Ⅰ'm impressed!
    Ꮩery helpful informatio specifiϲally tɦe closing section :
    ) I takᥱ care of sᥙch info a lot. I was seeking thiѕ ⲣarticular information foг a long
    tіme. Thаnk yߋu and good luck.

  • Comment Link Mathias Friday, 29 July 2016 22:18 posted by Mathias

    Hi! Would you mind if I share your blog with my zynga group?
    There's a lot of people that I think would really enjoy your
    content. Please let me know. Many thanks

  • Comment Link Meridith Friday, 29 July 2016 22:07 posted by Meridith

    When someone writes an post he/she maintains the image of
    a user in his/her brain that how a user can understand it. So
    that's why this piece of writing is amazing. Thanks!

  • Comment Link Brandon Friday, 29 July 2016 22:03 posted by Brandon

    I wanted to thank you one more time for that amazing web site you have produced here.

    Its full of ideas for those who are actually interested in this specific subject,
    especially this very post. Your all so sweet plus thoughtful of others and
    reading your site posts is a good delight in my experience.
    And what a generous reward! Dan and I usually have
    pleasure making use of your points in what we need to do
    in a few weeks. Our list is a mile long so your tips will
    definitely be put to good use.

  • Comment Link Julius Friday, 29 July 2016 21:54 posted by Julius

    What i do not realize is in reality how you are no
    longer really a lot more neatly-appreciated than you may be now.
    You're very intelligent. You recognize thus significantly relating to this topic,
    produced me in my view imagine it from numerous various angles.
    Its like men and women don't seem to be involved except it is something to accomplish with Lady gaga!
    Your own stuffs nice. Always care for it up!

  • Comment Link Mckenzie Friday, 29 July 2016 21:46 posted by Mckenzie

    What i do not understood is in reality how you're now not actually much more well-preferred than you may
    be right now. You're so intelligent. You recognize therefore considerably on the subject of this matter, made me for my part
    believe it from numerous various angles. Its like women and men don't
    seem to be involved until it is one thing to accomplish with Lady gaga!
    Your personal stuffs outstanding. All the time maintain it up!

  • Comment Link Jodi Friday, 29 July 2016 21:44 posted by Jodi

    Hi there to all, the contents present at this web site are in fact awesome for people
    experience, well, keep up the nice work fellows.

  • Comment Link Keira Friday, 29 July 2016 21:42 posted by Keira

    Have you ever considered publishing an e-book or guest authoring on other blogs?

    I have a blog centered on the same information you discuss and would
    really like to have you share some stories/information. I
    know my audience would value your work. If you are even remotely interested, feel free to shoot me an email.

Leave a comment

Make sure you enter the (*) required information where indicated. HTML code is not allowed.

Our Office

+234 803 309 1270
144A, Aba-Port Harcourt Expressway, (By St. John's Busstop), Port Harcourt, Rivers state, Nigeria.
admin@remmyorthon.com; remmyorthon@gmail.com

Popular News

Our Vision

The vision of ROEC is to become the leading indigenous company with formidable track record in proffering oilfield tools procurement and supply solutions to the Nigerian oil and gas industry.

OUR REGION

Our services are concentrated in the Niger Delta region and beyond.

Request a quote